Caterpillar Inc. (CAT) Bundle
A Brief History of Caterpillar Inc.
Overview and Evolution
Caterpillar Inc., a prominent player in the heavy machinery sector, has a rich history dating back to its founding in 1925. Over the decades, it has evolved into a global leader in manufacturing construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
Financial Performance in 2024
As of September 30, 2024, Caterpillar reported total sales of $21.205 billion for the nine months ended September 30, reflecting an increase of $873 million, or 4%, compared to $20.332 billion during the same period in 2023. The profit for the nine months ended September 30, 2024, was $10.148 billion, an increase of $316 million, or 3%, from $9.832 billion in 2023.
Segment Performance
The breakdown of sales by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Total Sales (Millions) | Profit (Millions) | Profit Change (%) |
|---|---|---|---|
| Construction Industries | $6,345 | $1,486 | (20%) |
| Resource Industries | $3,028 | $619 | (15%) |
| Energy & Transportation | $4,259 | $4,259 | 21% |
| Financial Products | $3,029 | $766 | 13% |
Capital Expenditures and Shareholder Returns
Caterpillar reported capital expenditures of $1.28 billion in the first nine months of 2024, up from $1.11 billion in 2023. The company anticipates full-year capital expenditures of approximately $2.0 billion.
As part of its shareholder return strategy, Caterpillar repurchased $7.06 billion of common stock during the first nine months of 2024. The remaining authorization for share repurchases as of September 30, 2024, was $20.8 billion.
Debt and Financial Position
As of September 30, 2024, Caterpillar's total debt was $37.90 billion, with a consolidated net worth of $19.46 billion, maintaining a strong financial position.
The effective tax rate for the nine months ended September 30, 2024, was 21.4%, a decrease from 22.4% in the previous year.
Market Trends and Future Outlook
Caterpillar's order backlog at the end of the third quarter of 2024 was approximately $28.7 billion, indicating robust demand across its segments. The company’s strategy focuses on expanding its offerings and services, particularly in sustainability and digital technologies, positioning it well for future growth.
A Who Owns Caterpillar Inc. (CAT)
Major Shareholders
As of 2024, the ownership structure of Caterpillar Inc. (CAT) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 4.1% |
| Mutual Fund | Fidelity Investments | 3.5% |
| Individual Investor | Company Executives | 1.8% |
| Other | Various Individual Shareholders | 75.9% |
Shareholder Actions
In 2024, Caterpillar Inc. engaged in significant shareholder activities, including share repurchase programs. The company executed an aggregate of $7.06 billion in share repurchases during the first nine months of 2024. Specifically, Caterpillar repurchased:
- 2.3 million shares in Q3 2024 for approximately $0.8 billion.
- 18.2 million shares in the first nine months of 2024 for approximately $6.1 billion.
These repurchases reflect Caterpillar's ongoing commitment to return capital to shareholders while maintaining a robust financial position.
Financial Performance Indicators
Caterpillar’s financial performance continues to attract a diverse range of investors. For the nine months ending September 30, 2024, key financial metrics included:
| Financial Metric | Value |
|---|---|
| Total Sales and Revenues | $48.594 billion |
| Profit for the Period | $8.001 billion |
| Profit Per Share | $16.27 |
| Operating Profit Margin | 20.9% |
| Enterprise Cash | $5.6 billion |
Historical Ownership Trends
Over the years, the ownership of Caterpillar has seen a shift towards institutional investors. As of September 30, 2024, the breakdown of shares outstanding was approximately 483 million, indicating a reduction in total shares from previous years due to ongoing repurchase programs.
| Year | Total Shares Outstanding (in millions) | Institutional Ownership Percentage |
|---|---|---|
| 2020 | 509.1 | 75% |
| 2021 | 505.0 | 76% |
| 2022 | 493.0 | 78% |
| 2023 | 482.8 | 79% |
| 2024 | 483.0 | 80% |
Conclusion
The ownership of Caterpillar Inc. is predominantly in the hands of institutional investors, reflecting a strong confidence in the company's long-term performance. The ongoing share repurchase initiatives and solid financial metrics further solidify Caterpillar's position as a key player in the heavy machinery sector.
Caterpillar Inc. (CAT) Mission Statement
Overview of Mission Statement
Caterpillar Inc. aims to be the global leader in providing innovative solutions that enhance customer success. The mission statement emphasizes the commitment to sustainable practices, operational excellence, and community engagement while fostering a culture of inclusion and integrity.
Financial Performance Metrics
As of the third quarter of 2024, Caterpillar reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Sales and Revenues | $16.106 billion | $16.810 billion | -4% |
| Operating Profit Margin | 19.5% | 20.5% | -1.0% |
| Profit per Share | $5.06 | $5.45 | -7.1% |
| Operating Profit | $3.147 billion | $3.449 billion | -9% |
| Profit Before Taxes | $3.098 billion | $3.515 billion | -12% |
Sales and Revenue Breakdown
Sales and revenues for the nine months ended September 30, 2024, showed a slight decline compared to the previous year:
| Segment | Sales (Q3 2024) | Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Construction Industries | $6.345 billion | $6.999 billion | -9% |
| Resource Industries | $3.028 billion | $3.351 billion | -10% |
| Energy & Transportation | $7.187 billion | $6.859 billion | 5% |
Key Financial Data
For the nine months ended September 30, 2024, Caterpillar reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Sales and Revenues | $48.594 billion | $49.990 billion | -3% |
| Operating Profit Margin | 20.9% | 19.7% | 1.2% |
| Profit per Share | $16.27 | $14.85 | 9.5% |
| Enterprise Operating Cash Flow | $8.6 billion | N/A | N/A |
Capital Allocation and Shareholder Returns
In 2024, Caterpillar has allocated significant funds toward shareholder returns:
| Action | Amount |
|---|---|
| Share Repurchase (First 9 Months) | $7.06 billion |
| Quarterly Dividend per Share | $1.41 |
| Total Dividends Paid (First 9 Months) | $1.97 billion |
Corporate Responsibility and Sustainability
Caterpillar is committed to sustainability and operational excellence, aligning with its mission to improve the lives of customers and communities globally. The focus areas include:
- Environmental Stewardship: Initiatives aimed at reducing carbon footprint and enhancing product sustainability.
- Community Engagement: Active participation in community development and support programs.
- Employee Inclusion: Fostering a diverse and inclusive workplace culture.
How Caterpillar Inc. (CAT) Works
Company Overview
Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through three main segments: Machinery, Energy & Transportation (ME&T), Financial Products, and Other. As of September 30, 2024, Caterpillar reported total sales and revenues of $48.594 billion, a decrease of 3% from $49.990 billion in the same period in 2023 .
Financial Performance
In the third quarter of 2024, Caterpillar's total sales and revenues were $16.106 billion, down from $16.810 billion in the same quarter of 2023, representing a 4% decrease. The operating profit margin for this quarter was 19.5%, compared to 20.5% in the previous year .
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Sales and Revenues | $16.106 billion | $16.810 billion | $48.594 billion | $49.990 billion |
| Operating Profit Margin | 19.5% | 20.5% | 20.9% | 19.7% |
| Profit per Share | $5.06 | $5.45 | $16.27 | $14.85 |
| Enterprise Cash | $5.6 billion | N/A | N/A | N/A |
Segment Performance
The performance of Caterpillar's segments in the third quarter of 2024 was as follows:
| Segment | Operating Profit (Millions) | Change from Q3 2023 (%) |
|---|---|---|
| Construction Industries | $1,486 | (20%) |
| Resource Industries | $619 | (15%) |
| Energy & Transportation | $1,433 | 21% |
Cash Flow and Liquidity
Caterpillar reported net cash provided by operating activities of $1.02 billion for the first nine months of 2024, compared to $905 million in the same period of 2023. The company ended the third quarter of 2024 with $5.64 billion in cash .
Debt and Capital Structure
As of September 30, 2024, Caterpillar's total debt stood at $37.90 billion, an increase of $23 million from the end of 2023. The company has three global credit facilities totaling $10.50 billion .
Capital Expenditures and Investments
Caterpillar's capital expenditures for the first nine months of 2024 were $1.28 billion, with expectations to reach approximately $2.0 billion for the full year. The company plans to reinvest in strategic growth initiatives .
Share Repurchase Program
In the first nine months of 2024, Caterpillar repurchased $6.1 billion worth of shares, with $20.8 billion remaining under its current share repurchase authorizations .
Outlook and Market Conditions
Looking ahead, Caterpillar anticipates lower equipment sales in the Construction Industries for the fourth quarter of 2024 compared to the previous year, although long-term demand remains positive. The company is also expected to benefit from government-related infrastructure projects .
How Caterpillar Inc. (CAT) Makes Money
Revenue Segments
Caterpillar Inc. generates revenue through three primary segments: Machinery, Energy & Transportation (ME&T), Financial Products, and All Other segments.
| Segment | Revenue (2024, $ in billions) | Change from 2023 (%) |
|---|---|---|
| Machinery, Energy & Transportation | 46.031 | -3 |
| Financial Products | 2.563 | +9 |
| Total Revenue | 48.594 | -3 |
Sales by Segment
For the nine months ended September 30, 2024, sales were distributed as follows:
| Segment | Sales (2024, $ in millions) | Sales (2023, $ in millions) | Change (%) |
|---|---|---|---|
| Construction Industries | 19,385 | 20,806 | -7 |
| Resource Industries | 9,152 | 10,091 | -9 |
| Energy & Transportation | 17,572 | 16,767 | +5 |
Operating Profit and Margins
Operating profit for the nine months ended September 30, 2024, was $10.148 billion, representing an increase of $316 million, or 3%, compared to $9.832 billion in 2023. The operating profit margin was 20.9% for 2024, up from 19.7% in 2023.
| Metrics | 2024 | 2023 |
|---|---|---|
| Operating Profit ($ in billions) | 10.148 | 9.832 |
| Operating Profit Margin (%) | 20.9 | 19.7 |
Financial Products Segment
The Financial Products segment reported revenues of $2.563 billion for the nine months ended September 30, 2024, an increase from $2.358 billion in 2023. The segment profit was $766 million, a 13% increase compared to $675 million in the previous year.
Cost Structure
Total operating costs for the nine months ended September 30, 2024, were $38.446 billion, a decrease of $1.712 billion from $40.158 billion in 2023.
| Cost Category | 2024 ($ in billions) | 2023 ($ in billions) |
|---|---|---|
| Cost of Goods Sold | 29.878 | 31.751 |
| Selling, General, and Administrative Expenses | 4.898 | 4.615 |
| Research and Development Expenses | 1.588 | 1.554 |
Cash Flow
Enterprise operating cash flow for the nine months ended September 30, 2024, was $8.6 billion, compared to $8.882 billion in 2023.
Profitability Metrics
For the nine months ended September 30, 2024, profit attributable to common shareholders was $8.001 billion, compared to $7.659 billion for the same period in 2023. The profit per share was $16.27, up from $14.85 in 2023.
| Profit Metrics | 2024 ($ in billions) | 2023 ($ in billions) |
|---|---|---|
| Profit Attributable to Common Shareholders | 8.001 | 7.659 |
| Profit Per Share | 16.27 | 14.85 |
Debt and Financial Position
Total debt as of September 30, 2024, was $37.90 billion, with $10.50 billion available through global credit facilities.
| Debt Metrics | Amount ($ in billions) |
|---|---|
| Total Debt | 37.90 |
| Available Credit Facilities | 10.50 |
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Updated on 16 Nov 2024
Resources:
- Caterpillar Inc. (CAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Caterpillar Inc. (CAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Caterpillar Inc. (CAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.